June 20, 2008

Argentina slightly lowers soy forecast for 2007-08

Argentina adjusted its soy forecast for 2007-08 to 46.5 million tonnes from 47 million tonnes, citing lower-than-expected yields among later-seeded plants.

The Agriculture Secretariat said in a monthly crop forecast that timely rains led to high yields in many areas, with productivity ranging from 2.5 tonnes per hectare to 4 tonnes per hectare.

The government also said that Argentina farmers nearly finished gathering soy on the record 16.5 million hectares planted.

The USDA estimates Argentina's 2007-08 soy output at 47 million tonnes. In 2007, soy production in the country hit a record 47.5 million tonnes.

The secretariat also slightly lowered its forecast for 2007-08 corn production to 20.4 million tonnes, from its previous estimate of 20.6 million tonnes.

The USDA expects an Argentine corn crop of 21.5 million tonnes.